Applications Jump in MBA Weekly Survey
Mortgage applications increased last week as key interest rates fell to their lowest levels since November, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending June 2.
The week’s results included an adjustment for the Memorial Day holiday.
The Market Composite Index increased by 7.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 15 percent compared to the previous week.
The Refinance Index increased by 3 percent from the previous week. The refinance share of mortgage activity decreased to 42.1 percent of total applications from 43.2 percent the previous week.
The seasonally adjusted Purchase Index increased by 10 percent from one week earlier to its highest level since May 2010. The unadjusted Purchase Index decreased by 14 percent compared to the previous week and was 6 percent higher than the same week one year ago.
The FHA share of total applications increased to 10.6 percent from 10.5 percent the week prior. The VA share of total applications increased to 11.1 percent from 10.8 percent the week prior. The USDA share of total applications remained unchanged at 0.8 percent from the week prior.
“With the unemployment rate at its lowest level since May 2001 and mortgage rates at their lowest level since November of last year, mortgage application volume strongly increased coming out of the Memorial Day holiday,” said MBA Associate Vice President of Industry Surveys and Forecasting Joel Kan. “Purchase application volume increased to its highest level since May 2010. Refinance activity bumped up as well in response to moderating rates, but remained generally subdued.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November, 4.14 percent, from 4.17 percent, with points increasing to 0.34 from 0.32 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to its lowest level since November, 4.08 percent, from 4.11 percent, with points decreasing to 0.21 from 0.30 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to its lowest level since December, 4.01 percent, from 4.03 percent, with points increasing to 0.39 from 0.32 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since November, 3.39 percent, from 3.42 percent, with points increasing to 0.43 from 0.39 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages decreased to its lowest level since November, 3.19 percent, from 3.22 percent, with points decreasing to 0.27 from 0.33 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity decreased to 7.4 percent of total applications.
The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
